of business, or to be sent by mail, stating the amount of such taxes and demanding payment thereof. (b) ADDITION TO TAX FOR NONPAYMENT. -If such person does not pay the taxes, within ten days after the service or the sending by mail of such notice, it shall be the duty of the collector or his deputy to collect the said taxes with a penalty of 5 per centum additional upon the amount of taxes, and interest at the rate of 6 per centum per annum from the date of such notice to the date of payment; except that in the case of income, estate or gift taxes, such penalties shall not apply and the interest for nonpayment of tax shall be such as is specifically provided by law with respect to such taxes. (c) CROSS REFERENCES. - For additions to tax for nonpayment after notice and demand in case of- Income taxes, see sections 294 (b) and 297. Estate taxes, see section 893. Gift taxes, see section 1018. SEC. 3656. PAYMENT BY CHECK. (a) CERTIFIED CHECKS.- (1) AUTHORITY TO RECEIvE.-It shall be lawful for collectors to receive for internal revenue taxes certified checks drawn on na- tional and state banks and trust companies during such time and under such regulations as the Secretary may prescribe. (2) DISCHARGE OF LIABILITr.- (A) CHECK DULY PAID. -No person who may be indebted to the United States on account of internal revenue taxes who shall have tendered a certified check or checks as provisional pay- ment for such taxes, in accordance with the terms of this sub- section, shall be released from the obligation to make ultimate payment thereof until such certified check so received has been duly paid. (B) CIIECKINPAID.- If any such check so received is not dul id by the bank on which it is drawn, and so certifying, the United States shall, in addition to its right to exact pay- ment from the party originally indebted therefor, have a lien for the amount of such check upon all the assets of such bank; and such amount shall be paid out of its assets in preference to any or all other claims whatsoever against said bank, except the necessary costs and expenses of administration and the reim- bursement of the United States for the amount expended in the redemption of the circulating notes of such bank. (b) UNCERTIFIED CHECKS. - (1) AUTHORITY TO RECEIVE. -Collectors may receive uncertified checks in payment of income, war profits, and excess profits taxes, and any other taxes payable other than by stamp, during such time and under such rules and regulations as the Commissioner, with the approval of the Secretary, shall prescribe. (2) ULTIMATE LIABrLITY. -If a check so received is not paid by the bank on which it is drawn the person by whom such check has been tendered shall remain liable for the payment of the tax and for all legal penalties and additions to the same extent as if such check had not been tendered. SEC. 3657. PAYMENT BY UNITED STATES NOTES AND CERTIFICATES OF INDEBTEDNESS. Collectors may receive, at par with an adjustment for accrued inter- est, notes or certificates of indebtedness issued by the United States in payment of income, war profits, and excess profits taxes, and any other taxes payable other than by stamp, during such time and under such rules and regulations as the Commissioner, with the approval of the Secretary, shall prescribe. COLLECTION 447
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